Many years ago I worked at a company that had Ladbrokes in the UK as a customer. On my first visit to London, I noticed their storefronts and found them appalling. They were some of the sorriest, shabbiest public spaces I'd seen, clearly designed to extract resources from the least well off.
I don't really buy any of the arguments in favor of widespread legalization (and I include state lotteries in this). I could be ok with legalization for a few big events like the NCAA tournament because clearly there is some demand that must be met, but we should not be enabling gambling as a widespread daily habit.
Of course there will always be black market gambling and the state cannot protect its citizens from every evil, but nor should it actively enable them.
Your post made me think more about sports betting vs a lottery. To me, they really are different. With a lottery, you need to wait days to get the result (mostly). The chance for multiple quick dopamine hits is exceedingly low. (Scratch tickets and high speed lottos are another matter.). Now think about sports betting: So many simultaneous events or races, so the customer (user?) has many more chances for multiple quick dopamine hits. Maybe a potential framework to talk about gambling harm is opportunities for for multiple quick dopamine hits. If very low, then many tolerate it in their community, especially if a significant portion goes to social causes.
One thing I am absolutely sure about: Advertising for sports betting should be banned. I put it in the same class as cigarette ads as a child. Damn they looked so cool and fun. What a terrible message to spread!